An Investment in ECD: The Economic Argument "A better start is likely to lead to a better finish."

Charlie Coffey, O.C.
Executive Vice President
Government Affairs & Business Development
RBC Financial GroupSymposium on Early Child Development (ECD):
A Priority for Sustained Economic Growth and Equity

World Bank
Preston Auditorium
Washington, DC

Wednesday, September 28, 2005

Minister Davies, thanks very much for the kind introduction I
want you and our global audience to know that your government's
work with the Adult Continuing Education (ACE) program in
Jamaica (particularly in South St. Andrew) that helps school
dropouts get another chance at an education and skills training,
has not gone unnoticed. I understand the program is "making
a difference in the lives of residents" and that "some
of (your) protégés have gone on to achieve university
degrees." And on September 4th, I was nodding in agreement
while reading your eloquent words in a Jamaica Observer article:
"The most critical element in handling the challenges
of globalization is more education to produce a work force
that is world class one must cut across barriers to promote
overall national development."

By the way Minister Davies, it appears your brand of leadership
runs in the family not only are you an avid supporter
of early child development, so is Dr. Rose Davies. When your
wife delivered an impassioned speech on the subject at the
Kiwanis Club of Kingston earlier this year, her message captured
immediate attention. The Jamaica Observer picked up
on the story in its February 18th editorial, An assignment
for Dr. Davies. The piece summed up the urgency to act
upon Dr. Davies' ideas about early education, training childhood
teachers and improving the learning environment for children
with the phrase, "A better start is likely to lead to
a better finish." And not so coincidentally, there lies
the theme of my remarks, with a focus on the business imperative.

As everyone in this room (and on video conference) is aware,
the future economic well-being and growth of countries around
the globe rests in very small hands - in children's hands.
Children will be the keepers of the key for Canada
in 2020, for Peru in 2020, for France in 2020 - for every
country on the planet. This is why they deserve the very best
start in life. An investment in children strengthens the very
fabric of our workplaces, our societies and our economies.
We must make smart investments in children - in early child
development and care - to ensure a competitive workforce and
economy. Advocating sound policy and establishing innovative
strategies for children will contribute to Canada's path to
prosperity - to South Africa's path to prosperity, to Chile's
path to prosperity and the list goes on.

Art Rolnick's remarks reminded me of a story I read in the
Hartford Courant (a newspaper in Connecticut) last year entitled
"Spending on Kids: A Business Argument".
It was an article about an early child development forum organized
by a couple of organizations in the state. The piece, in part,
read: "A funny thing happened. The business crowd showed
up to hear eminent researchers from the Federal Reserve Bank
of Minneapolis. Here was Arthur Rolnick, extolling the virtues
of early childhood investment. Rather than saying, 'Let's
do this because it's our moral responsibility,' the new argument
employs rigorous cost-benefit analysis. And it concludes,
convincingly, that we're spending too much money on prisons,
welfare, remedial education and crisis intervention because
we don't spend enough on children before they head off to
school." As you heard this morning, the focus should
be on human development "the idea is to merge business
and social ways of thinking." This is a business imperative.

Strong, diverse public sector, community and business leadership
needs to be at the same table when it comes to policy direction
and issues about early child development. History has proven
time and time again that shifts or changes in public policy
don't usually take off until the business community rallies
behind them.

Some of you may remember what economist John Kenneth Galbraith
said nearly 25 years ago: "The views of one articulate
and affluent banker, businessman, lawyer, or acolyte economist
are the equal of several thousand welfare mothers in the corridors
of political power."

It's clear that business has a vested interest in supporting
and influencing the development of sound public policy, as
business has a stake in early child development outcomes,
i.e., education, employment, health, safety, increased productivity
and community engagement to name a few. The link between economic
development and reaching out to children may be an uncommon
link; however, it's time for business to make the link - to
"get comfortable with the uncomfortable"! The time
is now for business to take a more active interest and leadership
role in supporting early child development and care.

And this is why I'm involved. In Canada, supporting early
child development is an economic issue that requires more
federal, provincial and municipal government action; since
a good part of my job is "lobbying" elected officials
on key issues, there's a natural fit here. In Canada, supporting
early child development is an economic issue that needs corporate/business
action. And in Canada, supporting early child development
is an economic issue that requires more community action -
kids are everybody's business. As a business leader, children's
advocate and parent, the only way to make a difference is
to get involved and get others involved. It's all about leadership
in action

And there's more to my involvement important work revolving
around early child development and care is being done in Canada
and I consider myself fortunate to know and work with some
great minds in the field. Among his many achievements, Dr.
Fraser Mustard founded the Council for Early Child Development
in Ontario last year and based it around the recommendations
of the Early Years Study in 1999 (a study co-chaired by Fraser
and The Honourable Margaret McCain, a former Lieutenant-Governor
of New Brunswick). The Council is a not-for-profit, non-governmental,
association of community and networks with a focus on early
child development science and community action.

It's a special pleasure to be on the Canadian presentation
team for this Symposium with Fraser and Council colleagues
Kathleen Guy and Jane Bertrand, not to mention associates
Magdalena Janus of McMaster University in Hamilton, Ontario
and Dr. Alan Pence from Victoria, British Columbia. "From
early child development to human development: The quality
and capacity of our future population depends on what we do
now to support early child development." Those are Fraser's
words and with a passionate visionary like him in our
country, how can one not get involved? Every country needs
a Fraser Mustard!

As mentioned previously, governments play a critical role
in supporting and advancing the early child development and
care agenda too. On September 20th, Prime Minister Paul Martin
delivered a speech to senior members of the public service
emphasizing that, "Canada's competitive edge in the looming
economic showdown with China and India must be honed soon
after its toddlers leave the crib. It's about development
and learning during the crucial time in life when potential
is most readily nurtured and developed Canadians must
understand that the intellectual bar is being raised globally
and only the best-educated countries will successfully compete."

Our Prime Minister went on to say: "A successful head
start is important for all Canadians, and it is crucial for
many children of Aboriginal and new Canadians, who face particular
challenges of adjustment and transition. What it comes down
to is this: Canada will succeed only if Canadians succeed
(if our 'human capital' succeeds). Canada's greatest resource
isn't found deep within the earth. It's found in the minds
of those who walk upon it."

The Organization for Economic Cooperation and Development
(OECD) examined Canadian expertise in early child development
and care, in terms of research, data collection and information.
Last year, it released its international Report on Early Childhood
Education and Care in Canada. "The Report singled out
data provided by Canadian researchers as high quality, relevant
to Canada and increasingly cited at the international level."
It referenced the McCain/Mustard Study and the economics research
of Gordon Cleveland and Michael Krashinsky. The report also
heralded various analyses and data provided by the Child Care
Resource and Research Unit of the University of Toronto. The
bottom-line is that investments in early child development
will make a competitive difference to Canada and to your countries.
It's an investment in knowledge and innovation - an investment
in the future.

More business leaders must step up to the plate when it comes
to investing in children and early child development. They
need to hear and discuss research findings - the economic
case. They need to hear that high-quality early childhood
education produces "long-term positive outcomes and cost-savings
that include improved school performance, reduced special
education placement, lower school dropout rates, and increased
lifelong earning potential - that employers increasingly find
that the availability of good early childhood programs is
critical to the recruitment and retention of parent employees."
1

Here's more food for thought. Some of you may be familiar
with the "trillium flower with three petals, that's used
by Cornell University's Linking Economic Development and Child
Care Project to reflect the three ways the research community
has demonstrated the economic importance of early care and
education. Together the three petals capture the short and
long-term economic contributions made by early childhood services.
One petal represents Children and the investments in human
development and education. Another represents the Regional
Economy, investments in child care as an industry that
produces jobs and stimulates the economy. The third petal
represents Parents and the economic contributions they make
to the economy, as employees and consumers. The economic contributions
of children are considered long-term, because the pay-off
largely occurs after the child matures." 2

And others may know of James Heckman, a Nobel Laureate in
Economic Sciences from the University of Chicago, who "makes
a strong case for a higher return on human capital when dollars
are spent on the young rather than the old." He says
that "the returns to human capital investments are greatest
for the young for two reasons: (a) skill begets skills, and
b) younger persons have a longer horizon over which to recoup
the fruits of their investments." 3

In essence, early child development is gradually becoming
an industry worthy of investment and important to economic
growth. "It has fostered new relationships with business,
government and economic development experts. It has the potential
to spawn new approaches to data collection, planning, professional
development, management, finance, government policy, and advocacy."
4

"Promoting the healthy development of children is both
an ethical imperative and a critical economic and social investment.
A decent and wise society protects and nurtures all its children,
so that they grow up to be productive adults, and because
it's the right thing to do." 5

"The new convergence of research in neuroscience, human
behavior, and economics provides three clear, irrefutable
?ndings. First, young children develop in an environment of
relationships. Second, early experiences sculpt the evolving
architecture of the brain. Third, wise investments in young
children are among the most cost-effective outlays a society
can provide." 6

The responsibility for raising children rests mainly with
parents and families, but it also requires community and government
support. We live in a world where many parents work, we live
in a world where "school readiness is more than what
children know" 7 and we live is a world where
"school unreadiness is expensive." 8
As a result, there's also a business imperative at play here.

As Jack Shonkoff, dean of Brandeis University's Heller School
for Social Policy and Management and chairman of the National
Scienti?c Council on the Developing Child says: "This
is not about government raising children. This is about government
strengthening the capacity of families and communities to
do the job well. This is not about seeking equality in outcomes.
This is about striving for equality of opportunity. This is
not about liberals versus conservatives. This is about wise
investors who defy ideological labels." Again, there's
also a business imperative at play here.

In summary, there is a relationship between investing in
children and the development of human capital. Increasing
scientific evidence demonstrating the impact of early experiences
on the development of the brain and compelling economic data
on the return on investment in children has been talked about
today and will be an ongoing topic throughout this Symposium and
even after we all head home. People like Jacques Van der Gaag
from The Netherlands will also push the envelope on the dialogue.

Needless to say, there are many challenges and opportunities
at our doorsteps. No country can afford to minimize the economic
and social priorities at stake or risk losing "the behaviour
and educational battles in the early years." Government
has a responsibility to continue investing in children and
young people - so do educators and parents, as well as community
and business leaders. RBC Financial Group continues to invest
in, as well as support, education and children. Although there's
much work being done across the country, we know there's much
more for corporate Canada to do - it is a business imperative.

I close in part, with another quote from our Prime Minister:
"Today, we don't just want our children to succeed in
school. We need them to. We don't just want them to get the
right training and develop the right skills to land a good
job. We need them to. We're investing in lifelong (quality)
learning, so that Canadians can keep up, keep ahead of the
curve, as technology progresses and as the demand for specialized
skills evolves. We're working to ensure that a university
education is accessible to all, and that income does not stand
as a barrier. And we're working to ensure sure that Canadians
start learning and developing at an early age, and that income
does not stand as a barrier."

It's clear that World Bank and the International Monetary
Fund are moving toward backing education in developing nations
- this Symposium is only one example of its leadership. It's
also clear that the strength of diversity in this room breeds
common ground and interests, as well as sharing of information
and promising practices.

Ultimately, advances in early child development are about
quality, leadership in action and the principle that
"A better start is likely to lead to a better finish."
And since we're talking about leadership in action,
the business imperative truly does matter!

Thank you for inviting me to participate in this world of
difference discussion.

References1 The Business Roundtable/Corporate Voices for Working Families
Joint Statement: Early Childhood Education: A Call to Action
from the Business Community, May 7, 2003

2 Friedman, Dana E., New Economic Research on the Impact
of Preschool (for Smart Start's National Technical Assistance
Center and its 2005 Learning Community on Early Childhood
Finance Reform)

Council for Early Child Development, Ontario: http://www.councilecd.ca

Gordon Cleveland, Michael Krashinsky: The Benefits and Costs
of Good Child Care, The Economic Rationale for Public Investment
in Young Children - A Policy Study, University of Toronto,
1998; Fact and Fantasy: Eight Myths about Early Childhood
Education and Care, University of Toronto at Scarborough,
March 2003 www.childcarecanada.org/pubs/other/benefits/bc.pdf

http://www.voicesforchildren.ca/report-Sept2003-1.htm

David Dodge: Human Capital, Early Childhood Development and
Economic Growth: An Economist's Perspective, Sparrow Lake
, May 2003